Shein is offering its Chinese manufacturers temporary incentives to move some of their production to Vietnam in response to rising US tariffs. According to Retail Gazette, the incentives include up to a 30 per cent increase in procurement prices and larger order guarantees.

The move is part of the fast fashion retailer’s efforts to shift its production outside of China after US President Donald Trump called a halt to Section 321 de minimis earlier this week. The de minimis previously allowed low-value packages from China to be shipped duty-free to the US. This means that prices of cheap Chinese goods are likely to increase in the country, affecting the operations of Shein and similar businesses like Temu and Amazon Haul.

Shein hopes its strategy to expand in Vietnam will help mitigate the impact of Trump’s tariffs on its business model, which relies heavily on Chinese production. The company’s operations in Vietnam currently face some challenges after the local government required it to register its e-commerce services late last year. This came amid concerns about the impact of deep discounting by Chinese online platforms, as well as the potential sale of counterfeits.